Capital One - Using Credit
Using Your Credit Card Wisely. Text Version
Using your card wisely is easier than you probably think. There are three simple rules to follow. If you follow them, you're golden.
- Pay on time: If you can, always pay off your entire balance. Pay the minimum required at the very least. Late or missed payments don't just mean extra fees – they can hurt your credit score.
- Stay within your limit: Try not to exceed 75% of your credit limit. That way you'll have a nice buffer in case an unexpected expense arises, and you'll protect your credit rating too.
- Be cautious with cash withdrawals: Sure cash is handy, but it begins collecting interest from the moment it leaves the machine and goes into your pocket. Also, this cash might come at a premium because you're likely charged a cash withdrawal fee.